Iren S.p.a. · MIL:IRE
Iren — 9M 2018 Earnings Presentation
14 slides from Iren's earnings presentation, Nov 7, 2018
Slide 1: 2018 – 9M Results
7th November 2018 2018 – 9M Results
Slide 2: 9M 2018: Strong delivery on all the strategic pillars
9M 2018: Strong delivery on all the strategic pillars KPIs Ebitda Bridge +7% m€ 9M '17 9M '18 Δ Δ% 40* 706 20 666 622 11 15 Revenues 2,614 2,824 210 8.0% 13 Ebitda 622 706 84 13.5% (15) Ebit 339 411 72 21.2% Net profit 179 236 57 32.4% EBITDA Sce nario Hydro volumes Organic growth Synergies Consolid
Slide 3: NETWORKS – Organic growth, synergies and consolidation drive the growth
NETWORKS – Organic growth, synergies and consolidation drive the growth despite non-recurring negative elements m€ 9M '17 9M '18 Δ Δ% • Energy and water networks: thanks to organic growth, synergies and consolidation (ACAM since April 2018), Revenues 668 676 8 1% Networks SBU keeps on its growth tre
Slide 4: WASTE – Organic growth offset by higher collection start up costs
WASTE – Organic growth offset by higher collection start up costs m€ 9M '17 9M '18 Δ Δ% • EBITDA stable: the combined positive effects of organic growth, ACAM consolidation and synergies offset the Revenues 408 456 48 12% higher extraordinary start up costs related to the expansion Ebitda 115 116 1
Slide 5: ENERGY – Positive results thanks to hydro sector and ancillary services
ENERGY– Positive results thanks to hydro sector and ancillary services • Extraordinary sale of white certificates of 60m€. • Strong contribution from hydro generation. Ancillary services m€ 9M '17 9M '18 Δ Δ% barely offset the reduction in thermoelectric/cogeneration margins due to higher gas costs
Slide 6: MARKET – Partial recovery in margins despite negative commodity scenario
MARKET – Partial recovery in margins despite negative commodity scenario • Electricity sale sector: the temporary negative scenario m€ 9M '17 9M '18 Δ Δ% was more than offset by an increase in volumes sold, an Revenues 1,689 1,754 65 4% hedging policy on procurement prices and previous years balance
Slide 7: From EBITDA to Net Profit
From EBITDA to Net Profit 9M '17 9M '18 Δ Δ% EBITDA 622.2 706.1 83.9 13.5% D&A -235.2 -257.9 • Increase in D&A due to higher fixed assets and consolidation operations offset by lower Provisions -48.0 -37.6 provisions. EBIT 338.9 410.6 71.7 21.2% • Lower financial charges thanks mainly to Financial c
Slide 8: Cash-flow and NFP Bridge
Cash-flow and NFP Bridge -158m€ 2,372 181 2,395 113 2,214 286 (17) (14) (256) (238) (32) NFP 31.12.17 Net Profit D&A, NWC Variation Capex Dividends Disposals Derivatives NFP adj. Consolidation NFP 30.09.18 provisions and other Net of consolidation effect, debt would decrease by 158m€, benefitting
Slide 9: Interest rate and debt structure
Interest rate and debt structure Gross debt interest rate 100% of gross debt at fixed interest rate. 17% Average long-term debt duration of about 5.5 years (4.8 years in 9M 2017). 83% Reduction in cost of debt (2.8% vs. 3.2% in 9M 2017). Fixed Swap Variable IREN’s debt is formed of: Debt str
Slide 10: Closing remarks
Closing remarks Iren delivered organic growth and synergies once again in line with the business plan objectives. The Acam consolidation has started on April 1st, confirming the leading role of Iren in its reference area. The effectiveness in integrating companies is allowing the Group to focus on s
Slide 11: Annexes
ren Annexes Pag. 11
Slide 12: Scenario
Scenario 9M '17 9M '18 Δ% Gas Demand (bcm) 51.9 51.5 -0.8% TTF €/000 scm 160 235 46.7% PSV €/000 scm 202 241 19.4% Energy Demand (Twh) 234.4 249.7 6.5% PUN (€/Mwh) 51.3 58.9 14.7% CO2 €/Ton 5.3 14.4 172.1% Green Cert. Hydro (€/Mwh) 107.3 99.0 -7.8% Pag. 12
Slide 13: Balance Sheet
Balance Sheet 9M '18 FY '17 Net fixed assets 5,720 5,412 Net Working Capital 150 182 Funds -617 -618 Other assets and liabilities -296 -105 Net invested capital 4,957 4,871 Group Shareholders' equity 2,562 2,499 Net Financial Position 2,395 2,372 Total Funds 4,957 4,871 Pag. 13
Slide 14: DISCLAIMER
DISCLAIMER The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Massimo Levrino, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the accounting info